'Competition' driving down tracker mortgage rates, says Alexander Hall rep

Date:Friday 12th November 2010
Author: Max Freedman

Consumers are benefiting from lower tracker mortgage rates because companies are having to compete with each other for business, according to a source from Alexander Hall.

Andy Pratt, chief operating officer at the mortgage advice firm, explained that the lenders he has spoken to recently have said they want to do more business.

He admitted such finance providers are not aiming to increase their levels of lending radically, but suggested their eagerness to hand out cash may have had an effect on interest rates.

"The factor now taking a greater hold and having a bigger impact on the decision to drop the rates is actually competition," remarked Mr Pratt.

In his opinion, the lenders that want new business are having to fight over a limited market, because consumer confidence is currently low and not many people want to take on a mortgage.

His comments were made in response to a statement by the Bank of England, which indicated the average tracker mortgage rate has been steadily falling from July to September.